FCC Releases R&O Adopting Standard Questions for Executive Review of Foreign Ownership Applications

On October 1, 2021, the FCC released the Second Report and Order (“R&O”) adopting standardized national security and law enforcement questions (“Standard Questions”) that certain applicants and petitioners with reportable foreign ownership will be required to answer as a part of the Executive Branch review process required for certain applications and petitions, which was adopted at the September Open Meeting.

The R&O adopts standardized national security and law enforcement questions (“Standard Questions”) that certain applicants and petitioners with reportable foreign ownership will be required to answer as a part of the Executive Branch review process required for certain applications and petitions.  You may recall that last year the FCC adopted the Executive Branch Review Order, which adopted rules and procedures to facilitate a more streamlined and transparent review process for applications that are referred to the Executive Branch agencies for their review of national security, law enforcement, foreign policy, or trade policy issues related to the foreign ownership of the applicants.  As a part of this expedited process, the Executive Branch Review Order required applicants to provide answers to a set of Standard Questions prior to or at the same time that their application was filed with the FCC.  In March, the FCC released a Public Notice, described below, seeking comment on the Standard Questions.  The R&O adopts six sets of Standard Questions and a Personally Identifiable Information Supplement, which are included in Appendix C.

The R&O largely adopted the Standard Questions as proposed in the Public Notice, with some changes to more narrowly tailor and clarify the instructions and certain questions to decrease burdens on applicants.  The following relevant clarifications and changes were made from the proposed Standard Questions in the Public Notice:

  • Modifies the instructions in all questionnaires to state that all the submitted information will be treated as business confidential and that applicants will not have to specifically identify information for such treatment.
  • Clarifies the process for joint applicants to an application to submit filings confidentially with regard to specific applicants.
  • Clarifies that “Planned Relationships” only relates to current relationships, those reasonably anticipate by negotiations, or those identified in a current business plan.
  • Clarifies that “Foreign Relationships” does not include customers.

The R&O also rejects several requests, including modifying the definition of ownership interest to increase it from 5% to 10%, allowing parties to cite to previously filed information rather than resubmit previously filed information, imposing a time limit on the requirement to provide previous filings with the Committee on Foreign Investment in the United States, making changes to questions concerning interconnecting carriers or peering relationships, and changes to questions regarding applicants’ national security and law enforcement obligations.

Upon adoption of the Standard Questions, the International Bureau, Media Bureau, and Wireline Competition Bureau (“the Bureaus”) are directed to work together to seek approval from the Office of Management and Budget (“OMB”).  Upon OMB approval, the Bureaus shall issue a Public Notice informing the public of the effective dates of the requirements, including the requirement to file responses to the Standard Questions with the Committee, and shall make the Standard Questions available on the FCC’s website.  Once the rules are effective, applications subject to Executive Branch review will be required to submit the Standard Questions with their application.

On September 9, 2021, the FCC released a Draft Second Report and Order (“Draft R&O”). No substantive changes were made from the Draft R&O

Please Contact Us if you have any questions.

Recent Posts